[TheForge] ABANA
Demon Buddha
[email protected]
Sun Jul 7 09:40:04 2002
Aaron Silver wrote:
> Um... I'm gonna disagree with the above because I can't see any instance
> where saving $25K for the same quality product is NOT the right move.
There are a million ways in which it can be the wrong move,
especially if it is not done well. I've witnessed this go
awry in at least one other non-profit entity. There are
some fundamentally different means of managing such things
and they are different for good reason. Profit motive almost
invariably spells death to the quality of nonprofit structures.
This is not the same as being efficient with funds. It is
primarily a difference in degrees to which one will take a
risk. In the case of for-profit, high risks hold the promise
of high profits (at least they ought to) and can be justified
on that basis alone. In non-profit, high risk cannot normally
be justified because nobody is supposed to be taking a
quarterly cash dividend. In non-profit, sensitivity to not
fixing what isn't broken is far higher than in commercial
ventures.
In the case in question, how was the added value determined?
By what means was it concluded that: a) money would be saved,
and b) that the quality of the publication would be maintained?